Economist Kachaje denies Village Bank savings theft

Renowned business and leadership consultant Henry Kachaje has denied social media allegations that he run away with a K200 million from a village bank, descring the reports as “fake news.”

Kachaje: Allegations are false

Kachaje in his rebuttal said the fake news could be work of foes bent on  jumping any opportunity to destroy his reputation.

He, however, said he  indeed joined a Village Bank in 2015 called GINCO as a mere member, saying he  believes Village Banks help promote a savings culture.

“ Since my joining, there have been three different executive committees. Last year, I, together with two others, were asked by the Chairperson of the group to serve in the executive committee.

“I do not have custody of the group cheque books, neither have I been involved in signing any of the group’s cheques,” said Kachaje, an economist.

He continued: “ As a new member to the executive committee, I noted that the group books from one year to another were not being closed off before starting a fresh cycle (year). As a result, the group had loans on its books from as far back as 2015.

“ I therefore pushed a motion in one executive meeting that this year, 2019, the books should be closed before  starting a new cycle in 2020 so that we have a realistic financial position of the group. This was a radical departure from previous practice.”

Kachaje explained that when  this was done, it became very clear that the group has been “technically bankrupt” for years. The group had accumulated huge bad debts from previous cycles and the performance of loans in the current cycle has not been very different.

He said the news was broken to the members at a meeting held on December 18 2019 where he  offered to speak on behalf of the Chairperson (having noted that discussions on the group’s WhatsApp chat had become very explosive).

Kachake saod  members were “too shocked, frustrated, agitated, angry, sad,”when  he  broke the bad news and that some have not been given their dues and the temperature of anger and frustration keeps rising.

“I am not surprised that others are now speculating that the money must have vanished”.

The economist said he strongly  believe that they  made the right decision not  to pretend all is rosy by covering up the losses as had been the practice previously by collecting fixed deposits from members.

“Unfortunately, this decision has punished members in this cycle, and this is regrettable.An independent committee comprising ordinary members has been set up to investigate and go through the books. An external auditor has also been engaged,” he added.

Kachaje, a former  Economics Association of Malawi (Ecama) president, said he had to reveal the information about Village  Bank in public to counter allegations about him.

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Maunits
Maunits
11 months ago

Better umbavao saba ma tax a Malawi kusiyana ndimbava za dpp zomwe zikuchoka posachedwa.

papa
papa
11 months ago

Mbava iyi. ndi yosaukanso koma zokambakamba mbweee no practical evidence of what he says

sure!
sure!
11 months ago

Economist amapanganso Bank Nkhonde????? koma yaaaaaaa, pa malawi pavuta

tung'ande
tung'ande
11 months ago

Nothing has been explained here. Some of us know Kachanje as a qualified trickstar. Last time he vanished with money meant for traing of small scale business

Mwananyanian
Mwananyanian
11 months ago

Good for you, Kachaje. Was this Bank involved in a Ponzi scheme or some facsimile? How can it be that the financial books were not closed off at the end of the year, and was that intentional? Balance sheets: even for individuals, the importance of a balance sheet at the end of each year cannot be overemphasized. I have been doing one for myself and my family for over twenty years: this is the only way to find out if one is advancing financially or not. What more with an organisation that is supposed to be managing other people’s money?… Read more »

Ndendeuli
Ndendeuli
11 months ago

I told you Kachaje is just a talk show host! He doesn’t even know how to make his own money and decided to make money from bank mkhonde. Shame!

wa Nyau
wa Nyau
11 months ago

mwabela anthu apa basi musatinamizepo.Ngati ma members anena kuti abeledwa ndye kuti aona zachilendo.Zikanakhala zagwela ena zimenezi bwezi mukulubwa lubwa apa. Sovanitu apa a ECONOMIST

David Wa Betha
David Wa Betha
11 months ago

This is very good bwana Kachaje a learned economists like you to join such business circles. In fact I am sure all you wanted is to draw some theories of what works or not around the taunted village banks. Now you owe the Malawi society an explanation on the effectiveness of village banks. Or to what extent can village banks be regulated as they seem to be self-regulated. I am excited to have heard about your association with one village bank wherever it is. In what’s aspects could the village banks be deemed a success? Could there be any partnerships… Read more »

Muheni
Muheni
11 months ago
Reply to  David Wa Betha

Village banks wouldn’t necessarily pose as competitors to commercial banks but rather serve a complementary role. Most of these keep their funds with commercial banks in which case as far as the computational of monetary aggregates is concerned their existence is not a distortion to the money market side of the economy. Perhaps the challenge will be how commercial banks can onboard these village banks. What specific product line to offer them. The central authority’s role then would be to smoothen this aspect. Let RBM accept their existence and have proper oversight over them.

Muheni
Muheni
11 months ago

Sorry Mr Kachaje. Reputation matters. Some folks are so unreasonable that they even in slightest misunderstandings they can gravely tarnish ones image. Pepani ndithu

Pep
Pep
11 months ago

Izooooo, daily kunena katangale wanzanu wanu mutapachika. Lero siizi

Kwangwgwa
Kwangwgwa
11 months ago
Reply to  Pep

Imvani nkhani nanu, kodi chizungu chakupitani kapena? Kachaje akuti wapeza bankrupt village bank savings. Sananene zoti wina amapanga katangale, koma village bank imayendera ma loses.

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